Guest Author - Scott Prock
I often get asked if a seller needs a resale tax ID, and why?
The simple answer is YES, and most states require it.
As I have mentioned before, the tax ID number will allow you to purchase from suppliers that deal with wholesale only sales.
In fact, if a company states that you do not need a tax Id or resale certificate, DO NOT do business with them unless you like competing with every other seller who is looking for the easy route.
Obtaining your tax ID number can sound like tough work, but most states only require that you fill out an application and send it in to the tax accessors office, and many states don't even charge for this.
Here are some simple steps to get yours.
Every state has it's own set of regulations and that is why I love the FirstGov website.
http://www.firstgov.gov
When you go there you will see a link on the left pointing to state governemt, on the page that follows click on your state.
Next look for a link related to business, or doing business in.
The next area can get a bit tricky, but you are looking for information related to. taxes, sales tax, licensing, starting a business, certificates, tax exemptions, etc.
If you can find anything, most state sites will have a search box you can use. Just remember that there are different terms used to describe a tax ID number.
Some common names . . .
Resale License Resale Exemption Certificate Sales Tax License Sales and Use Tax Use Tax Permit Tax Withholding application Reseller Tax ID Sales Tax ID
You will find many more valuable pieces of information related to doing business in your area from the FirstGove website.
One more thing ...
I created a free eBook that will give you one click access to your state tax information. I used Google and searched for every state, and then put these links into an easy to navigate eBook. You can even give this eBook away as long as you do not change the content or referrence to me.
Get a copy at ... TPRweb.com
Enjoy . . . Scott
